ANNEXURE A

CUSTOMS

Note:

(a) “Basic Customs Duty” (BCD) means Customs duty levied under the Customs Act, 1962
(b) Clause 95 (i) of the Finance Bill, 2021 seeks to amend the First Schedule to the Customs
Tariff Act, 1975 so as to increase the tariff rate of Basic Customs duty on certain goods.
(c) Agriculture Infrastructure and Development Cess (AIDC) means duty of Customs
imposed vide Clause 115 of the Finance Bill, 2021.
I. Changes in BCD rate

Chapter 1-6: No Change

Chapter 7

(1) A technical change has been made in the S. No. 20 of notification No. 50/2017-Customs
to specifically elaborate in the exclusion the description of various chickpeas (i.e. Chickpeas,
Kabuli Chana and Bengal Gram). [S. No. 1 of notification No. 2/2021-Customs, dated 1st Feb,
2021 refers]

(2) S. No. 20A, 21A, 21B, 21C, 21D of notification No. 50/2017-Customs are being
amended. AIDC is being imposed on peas, falling under subheading 0713 10, Kabuli Chana
falling under tariff item 0713 20 10, Bengal Gram falling under tariff item 0713 20 20,
Chickpeas falling under tariff item 0713 20 90 and Lentils (Mosur) falling under tariff item
0713 40 00. Simultaneously, BCD on these items have been reduced. For the revised rates,
refer to the Table in Annexure-C. [S. No. 2 of notification No. 02/2021-Customs dated 1st
February, 2021 refers]

(3) S. No. 21E of notification No. 50/2017-Customs is redundant. Hence it is being omitted
along with clause (e) of first proviso of the notification. [S. No. 3 of notification No. 2/2021-
Customs, dated 1st February, 2021 refers]

Chapter 8

(1) S. No. 32A, 32B of notification No. 50/2017-Customs are being amended. AIDC is
being imposed on Apples, falling under tariff item 0808 10 00. Simultaneously, BCD on this

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item has been reduced. For the revised rates, refer to the Table in Annexure-C. [S. Nos. 4, 5
of notification No. 02/2021-Customs dated 1st February, 2021 refers]

Chapter 9-11: No Change

Chapter 12

(1) S. No. 44 of notification No. 50/2017-Customs is redundant. Hence, it is being omitted

along with clause (b) of first proviso of the notification [S. No. 6 of notification No. 2/2021-
Customs dated 1st February, 2021 refers]

Chapter 13-14: No Change

Chapter 15

(1) S. Nos. 57, 61, 70 of notification No. 50/2017-Customs are being amended. AIDC is
being imposed on Crude Soya-bean Oil, falling under tariff heading 1507 10 00, Crude Palm
Oil, falling under tariff heading 1511 10 00 and Crude Sunflower Seed Oil, falling under tariff
heading 1512 11 10. Simultaneously, BCD on these items has been reduced. For the revised
rates, refer to the Table in Annexure-C. [S. No. 7 of notification No. 02/2021-Customs dated
1st February, 2021 refers]

Chapter 16-21: No Change

Chapter 22

(1) New S. Nos. 104A of notification No. 50/2017-Customs is being created. AIDC is being
imposed on alcoholic beverages and spirits, falling under tariff headings 2204, 2205, 2206 and
2208. Simultaneously, BCD on these items has been reduced. For the revised rates, refer to the
Table in Annexure-C. [S. No. 8 of notification No. 02/2021-Customs dated 1st February, 2021
refers]

(2) S. No. 107 of notification No. 50/2017-Customs is being omitted. Consequently, with
omission of this end use exemption, all Denatured ethyl alcohol (ethanol) falling under tariff
item 2207 20 00 will now attract 5% BCD. [S. No. 9 of notification No. 2/2021-Customs dated
1st February, 2021 refers]

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Chapter 23

(1) Duty rate structure on tariff items under chapter 23 is being rationalized and simplified.
The goods falling under this chapter shall attract BCD as follows: -

HSN Description Rate

2309 10 00 Dog and Cat food 20%
2309 90 Shrimp Larvae Feed 5%
Chapter 23 All other goods 15%

[S. Nos. 9, 10, 11, V of notification No. 2/2021-Customs, dated 1st February, 2021 refers].

Chapter 24: No change

Chapter 25

(1) A technical change has been made in the S. No. 175 of notification No. 50/2017-
Customs, to restrict the exemption to the specific heading 2501 instead of “Any Chapter”. [S.
No. 16 of notification No. 02/2021-Customs dated 1st February, 2021 refers]

(2) Social Welfare Surcharge is being exempted on Marble and travertine, Crude or roughly
trimmed (tariff item 2515 11 00) and on Marble and travertine Blocks (tariff item 2515 12 10)
[notification No. 14/2021-Customs, dated 1st February, 2021 refers].

(3) S. No. 130 of notification No. 50/2017-Customs is being amended to prescribe BCD
rate of 2.5% on all goods under CTH 2528. As a result, boron ore and concentrate would
uniformly attract BCD at a uniform rate of 2.5% [S. No. 12 of notification No. 02/2021-
Customs dated 1st February, 2021 refers]

(4) S. No. 131 of notification No. 50/2017-Customs is being omitted as it is redundant.

Acid grade fluorspar would continue to attract BCD rate of 5% vide S. No. 120 of the said
notification. [S. No. 13 of notification No. 02/2021-Customs dated 1st February, 2021 refers]

Chapter 26: No change

Chapter 27

(1) S. No. 140 and 141 of notification No. 50/2017-Customs are being merged into one
entry. Consequently S. No. 140 is being omitted. AIDC is being imposed on Coal, Lignite and

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Peat falling under tariff headings 2701, 2702 and 2703 respectively. Simultaneously, BCD on
these items have been reduced. For the revised rates, refer to the Table in Annexure-C. [S.
Nos. 13 and 14 of notification No. 02/2021-Customs dated 1st February, 2021 refers]

(2) S. No. 147A of notification No. 50/2017-Customs is being amended to decrease BCD
on Naphtha from 4% to 2.5%. [S. No. 15 of notification No. 02/2021-Customs dated 1st
February, 2021 refers]

Chapter 28

(1) BCD on Carbon blacks (Tariff item 2803 00 10) is being increased from 5% to 7.5%,
by increasing the tariff rate [Clause 95 (i) of the Finance Bill, 2021 refers]. By virtue of the
declaration under Provisional Collection of Taxes Act, 1931, this increase will come into force
with immediate effect.

Chapter 29

(1) S. No. 202 and 203 of notification No. 50/2017-Customs are being omitted.
Consequently, Bis-phenol A and Epichlorohydrin will now attract 7.5% BCD vide S. No. 185
of the said notification. [S. No. 17 of notification No. 2/2021-Customs dated 1st February, 2021
refers]

(2) S. No. 209 of notification No. 50/2017-Customs is being omitted. Consequently, with
omission of the end use exemption, all Diphenylmethane 4,4-diisocyanate (MDI) will now
attract 7.5% BCD vide S. No. 185 of the said notification. [S. No. 17 of notification No. 2/2021-
Customs dated 1st February, 2021 refers]

(3) BCD on Caprolactam is being reduced from 7.5% to 5% by amending the entry at S.
No. 210 of notification No. 50/2017-Customs. [S. No. 18 of notification No. 2/2021-Customs
dated 1st February, 2021 refers]

Chapter 30: No change

Chapter 31

(1) AIDC is being imposed on fertilizers namely Urea, Ammonium Nitrate, Muriate of
Potash and Diammonium Phosphate falling under tariff items 3102 10 00, 3102 30 00, Chapter
31 and 3105 30 00 respectively. Simultaneously, BCD on these items have been reduced. For

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the revised rates, refer to the Table in Annexure-C. [S. Nos. 19, 20 and 21 of notification No.
02/2021-Customs dated 1st February, 2021 refers]

Chapter 32-38: No change

Chapter 39

(1) BCD on all goods falling under tariff heading 3925 (Builder’s ware of plastics, not
elsewhere specified or included) is being increased from 10% to 15% by increasing the tariff
rate [Clause 95 (i) of the Finance Bill, 2021 refers]. By virtue of declaration under the
Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate
effect.

(2) The entry at S. No. 257 of notification No. 50/2017-Customs dated 30th June, 2017
(import of certain items by a bonafide exporter) is being modified to increase the scope of this
exemption. A new condition No. 108 is being prescribed for this entry. Simultaneously,
notification No. 34/2017-Customs, being in overlap with said S. No. 257, is being rescinded.
[S. No. 26 of notification No. 02/2021-Customs dated 1st February, 2021 and notification No.
07/2021-Customs dated 1st February, 2021 refer]

(3) S. No. 272 of notification No. 50/2017-Customs is being omitted. Consequently,

Polycarbonates will now attract 7.5% BCD vide S. No. 262 of the said notification refers. [S.
No. 27 of notification No. 02/2021-Customs dated 1st February, 2021 refers]

(4) BCD on Nylon chips is being reduced from 7.5% to 5% by amending the entry at S.
No. 273 of notification No. 50/2017-Customs dated 30th June, 2017. [S. No. 28 of notification
No. 02/2021-Customs dated 1st February, 2021 refers]

(5) S. No. 10 of notification No. 57/2017-Customs is being omitted. This entry provided
effective BCD rate of 10% on items of plastics falling under tariff item 3920 99 99 except
specified parts of cellular mobile phones like back cover, battery cover etc. The specified parts
of mobile under the said tariff item were attracting 15% BCD by tariff. Consequently, with this
omission, these goods will now attract 15% BCD. [S. No. (viii) of the notification No. 03/2021-
Customs dated 1st February, 2021 refers].

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Chapter 40

(1) An explanation is being added to S. No. 284 of notification No. 50/2017-Customs so as

to explicitly clarify that the said exemption entry does not include ‘toy balloons made of natural
rubber latex’. Toy balloons are classified under customs tariff heading 9503 and attract a basic
customs duty of 60%. [S. No. 29 of notification No. 2/2021-Customs, dated 1st February, 2021
refers]

Chapter 41

(1) S. No. 285 of notification No. 50/2017-Customs is being omitted. Consequently, with
omission of the said exemption, ‘wet blue chrome tanned leather, crust leather, finished leather
of all kinds, including splits and sides of the aforesaid’ falling under Chapter 41 will now attract
10% BCD. [S. No. 30 of notification No. 2/2021-Customs, dated 1st February, 2021 refers]

Chapter 42-47: No change

Chapter 48

(1) Entry at S. No. 293A and S. No. 293B of notification No. 50/2017-Customs are being
merged. These entries provide concessional rate to Newsprint and other uncoated paper. The
merged entry is for providing clarity to the scope of this exemption that exemption is available
to newsprint and other uncoated paper conforming to the specifications of newsprint (other
than its surface roughness). Consequently S. No. 293 B has been omitted. [S. No. 32 & 33 of
notification No. 2/2021-Customs, dated 1st February, 2021 refers]

Chapter 49: No change

Chapter 50

(1) BCD on Raw Silk (not thrown) falling under CTH 5002 is being increased from 10%
to 15%. This change is being given effect to by omitting S. No. 305 of notification No. 50/2017-
Customs and simultaneously amending S. No. 1 of notification No. 82/2017-Customs. [S. No.
33 of notification No. 02/2021-Customs, dated 1st February, 2021 and S. No. (i) of notification
No. 15/2021-Customs, dated 1st February, 2021 refers]

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(2) BCD on Silk Yarn falling under CTH 5004, 5005, 5006 is being increased from 10%
to 15% by amending S. No. 2 of notification No. 82/2017-Customs [S. No (ii) of notification
No. 15/2021-Customs, dated 1st February, 2021 refers]

Chapter 51: No Change

Chapter 52

(1) S. No. 314 of notification No. 50/2017-Customs is being amended. Cconsequently,

BCD on Cotton, not carded or combed falling under CTH 5201 is being increased from nil to
5%. [S. No 35 of notification No. 02/2021-Customs, dated 1st February, 2021 refers]. Raw
cotton shall also attract AIDC at the rate of 5%. [notification No. 11/2021-Customs, dated 1st
February, 2021 refers]

(2) BCD on Cotton Waste falling under CTH 5202 is being increased from Nil to 10%.
For making this change, S. No. 315 of notification No. 50/2017-Customs is being omitted and
S. No. 5 of notification No. 82/2017-Customs is being amended [S. No. 36 of notification No.
02/2021-Customs, dated 1st February, 2021 and S. No. (iii) of notification No. 15/2021-
Customs, dated 1st February, 2021 refers]

Chapter 53: No change

Chapter 54 and 55

(1) The BCD on Nylon fibre and yarn is being reduced from 7.5% to 5%. To give effect
to this change S. Nos. 318 and 321 notification No. 50/2017-Customs is being amended and S.
No. 319 and 322 of notification No. 50/2017-Customs is being omitted. Consequently, BCD
on all goods falling under CTH 5402 to 5406 and CTH 5501 to 5510 would be uniform 5%.
[S. No 37 & 38 of notification No. 02/2021-Customs, dated 1st February, 2021 refers]

Chapter 56-69: No Change

Chapter 70

(1) Tariff rate on all goods falling under heading 7007 is being increased from 10% to 15%
[Clause 95 (i) of the Finance Bill, 2021 refers]. By virtue of declaration under the Provisional
Collection of Taxes Act, 1931, this increase will come into force from 02.02.2021.

(2) BCD on all goods under heading 7007, other than those used in motor vehicles, is being
retained at 10% [S. No. 42 of notification No. 2/2021-Customs dated 02.02.2021 refers].

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Consequently, goods falling under heading 7007 when used for motor vehicles will attract the
tariff rate of 15%.

Chapter 71

(1) Tariff rate on all goods falling under tariff item 7104 90 90 (cut and polished synthetic
stones) is being increased from 10% to 15%. [Clause 95 (i) of the Finance Bill, 2021 refers].
By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will
come into force with immediate effect].

(2) S. No. 349 of notification No. 50/2017-Customs is being amended to exclude cut and
polished synthetic stones from the said entry. Consequently, cut and polished synthetic stones
falling under tariff item 7104 90 90 will now attract 15% BCD. [S. Nos. 43 of notification No.
2/2021-Customs dated 1st February, 2021 refers].

(3) S. No. 362 of notification No. 50/2017-Customs is being omitted to increase BCD rate
on cut and polished cubic zirconia from 7.5% to 15%, at par with other cut and polished
synthetic stones. [S. Nos. 49 of notification No. 2/2021-Customs dated 1st February, 2021
refers].

(4) On Silver, including Silver Dore falling under tariff heading 7106 and Gold, including
Gold Dore falling under tariff heading 7108, AIDC is being imposed. Simultaneously, BCD
on these goods have been reduced. For the revised rates, refer to the Table in Annexure C. [S.
Nos. 44, 45, 46, 47, 48 of notification No. 2/2021-Customs dated 1st February, 2021 refers].

(5) Gold, including Gold Dore and Silver and Silver Dore will now attract SWS at 10% of
BCD payable. [Notification No. 12/2021-Customs dated 1st February, 2021 refers].

(6) SWS on value representing Agriculture Infrastructure and Development Cess [AIDC]
on Gold, including Gold Dore and Silver, including Silver Dore is being exempted.
[Notification No. 13/2021-Customs, dated 1st February, 2021 refers]

(7) S. No. 364A is being amended in notification No. 50/2017-Customs to reduce the BCD
rate on Spent catalyst or ash containing precious metals from 11.85% to 9.17%. [S. No. 50
notification No. 2/2021-Customs dated 1st February, 2021 refers].

(8) S. No. 364B is being inserted in notification No. 50/2017-Customs to reduce the BCD
rate on all goods falling under tariff items 7107 00 00, 7109 00 00 and 7111 00 00 and tariff

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headings 7110, 7112 and 7118 from 12.5% to 10%. [S. Nos. 51 of notification No. 2/2021-
Customs dated 1st February, 2021 refers].

(9) S. No. 364C is being inserted in notification No. 50/2017-Customs to reduce the BCD
rate on Gold or Silver findings from 20% to 10%. [S. No. 51 notification No. 2/2021-Customs
dated 1st February, 2021 refers].

Chapter 72

(1) Duty rate structure on tariff items under chapter 72 is being reduced and rationalized.
In the following manner: -

HSN Description Rate S. No. of Notfn. No.

02/2021 – Customs,
dated 1st February,
2021
7204 Scrap of iron or steel including Nil 54
stainless steel and alloy steel (up to
31.03.2022)
7206, 7207 Primary/Semi-finished products 7.5% 62
of iron or non-alloy steel
7208, 7209, Flat Products of iron or non- 7.5% 62
7210, 7211, alloy steel and alloy steel
7212, 7225
(except 7225 11
00), 7226 (except
7226 11 00)
7213, 7214, Long Products of iron or non- 7.5% 62
7215, 7216, alloy steel, stainless steel and
7217, 7221, alloy steel
7222, 7223,
7227, 7228
7225 Specified inputs for Nil 59 and 60
manufacturing CRGO steel (subject to
mentioned against S. Nos. 374 end use
and 375 of notification No. condition

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 50/2017 – Customs dated and up to
30.06.2017 31.03.2023)

(2) The following notifications imposing anti-dumping duty or countervailing duty on

certain products of steel are being temporarily revoked for the period 02.02.2021 to 30.09.2021:

S. No. Notification No. Product/ Exporting Country

1 54/2018- Cus (ADD) Straight length Bars and Rod China PR,
dated 18.10.2018 of alloy Steel
2 38/2019-Cus (ADD) High Speed Steel of Non China PR, Brazil,
dated 25.09.2019 Cobalt Grade Germany,
3 16/2020 – Cus (ADD) Flat rolled prdcts of steel, (Al China PR, Vietnam,
dated 23.06.2020 or Zinc coated) and Korea RP,
4 1/2017-Cus (CVD) Hot rolled and cold rolled China PR
dated 07.09.2017 stainless steel flat products
[Notification Nos. 05/2021-Customs (ADD), 06/2021-Customs (ADD), 07/2021-Customs
(ADD), and 02/2021- Customs (CVD), all dated 1st February, 2021 refers]

(3) Provisional countervailing duty imposed vide notification No. 02/2020-Cus(CVD)

dated 09.10.2020 on Flat rolled products of stainless steel originating in or exported from
Indonesia, is being revoked. [Notification No. 01/2021-Customs (CVD), dated 1st February,
2021 refers]

(4) In Sunset Review, anti-dumping duty on Cold-Rolled Flat Products of Stainless Steel
of width 600mm to 1250mm and above 1250mm of non-bonafide usage originating in or
exported from People’s Republic of China, Republic of Korea, European Union, South Africa,
Taiwan, Thailand and United States of America is being discontinued upon expiry of the anti-
dumping duty hitherto leviable vide notifications No. 61/2015 – Customs (ADD) dated 11th
December, 2015 and 52/2017 – Customs (ADD) dated 24th October, 2017.

Chapter 73

(1) BCD on Screws, bolts, nuts etc. under heading 7318 is being increased to 15% by
amending Sl. Nos. 377 and 377A of notification No. 50/2017 – Customs. [S. Nos. 63 and 64
of notification No. 02/2021-Customs, dated 1st February, 2021 refers].

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Chapter 74

(1) BCD on copper waste and scrap under heading 7404 is being reduced to 2.5% by
amending Sl. No. 382 of notification No. 50/2017 – Customs. [S. No. 66 of notification No.
02/2021-Customs, dated 1st February, 2021 refers].

Chapter 75-83: No Change

Chapter 84

(1) BCD exemption on ‘tunnel boring machines (TBMs)’ (heading 8430) has been
withdrawn. Consequently, it will now attract BCD of 7.5 %. Also, ‘parts & components for
manufacture of TBMs’ falling under heading 8431 will now attract 2.5% BCD with actual-user
conditions. S. No. 446 of notification No. 50/2017-Customs has been amended accordingly [S.
No. 74 of notification No. 02/2021-Customs, dated 1st February, 2021 refers].

(2) Tariff rate on all goods falling under sub-heading 8414 40 and 8414 80 is being
increased to 15% [Clause 95 (i) of the Finance Bill, 2021 refers]. However, the effective BCD
on all goods under these sub-headings, except for tariff item 8414 80 11, is being retained at
7.5% [S. No. 75 of notification No. 02/2021 – Customs dated 1st February, 2021 refers].

(3) BCD on compressors of Refrigerators falling under tariff item 8414 30 00 and
compressors of Air Conditioners falling under tariff item 8414 80 11, is being increased from
12.5% to 15% by increasing the tariff rate. [Clause 95 (i) of the Finance Bill, 2021 refers]. By
virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will
come into force with immediate effect.

Chapter 85

(1) Tariff rate on all goods falling under sub-heading 8501 10 to 8501 53 is being increased
from 10% to 15% [Clause 95 (i) of the Finance Bill, 2021 refers]. By virtue of declaration
under the Provisional Collection of Taxes Act, 1931, this increase will come into force from
02.02.2021. However, the effective BCD on all goods under these sub-headings (8501 10 to
8501 53), is being retained at 10% [S. No. 77 of notification No. 2/2021 – Customs dated 1st
February, 2021 refers]. Consequently, goods falling under sub-headings 8501 10 to 8501 53
will attract the effective BCD rate of 10%.

(2) Basic customs duty on Solar Inverters (sub-heading 8504 40) is being raised to 20%.
For this purpose, S. No. 13 of the notification No. 57/2017-Customs is being amended.

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Simultaneously, notification No. 1/2011-Customs, dated 6th January, 2011 is being rescinded.
[S. No. (ix) of the notification No. 03/2021-Customs dated 1st February, 2021 and, notification
No. 07/2021-Customs, dated 1st February, 2021 refer].

(3) Notification No. 1/2011-Customs, dated 6th January, 2011 is being rescinded.
Consequently, all items of machinery, including prime movers, instruments, apparatus and
appliances, control gear and transmission equipment and auxiliary equipment (including those
required for testing and quality control) and components, required for the initial setting up of a
solar power generation project or facility will attract applicable BCD. [Notification No.
07/2021-Customs, dated 1st February, 2021 refers].

(4) BCD on parts of all goods under tariff item 8512 90 00 (parts of electrical lighting or
signaling equipment, windscreen wipers, defrosters and demisters, of a kind used for motor
vehicles) is being increased from 10% to 15% by increasing the tariff rate [Clause 95 (i) of the
Finance Bill, 2021 refers. By virtue of declaration under the Provisional Collection of Taxes
Act, 1931, this increase will come into force from 02.02.2021.

(5) Tariff rate on all goods falling under tariff items 8536 41 00 and 8536 49 00 is being
increased from 10% to 15% [Clause 95 (i) of the Finance Bill, 2021 refers]. By virtue of
declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into
force from 02.02.2021. However, the effective BCD on all goods under tariff items 8536 41 00
and 8536 49 00 is being retained at 10% [S. No. 83 of notification No. 02/2021 – Customs
dated 1st February, 2021 refers]. Consequently, goods falling under sub-headings 8501 10 to
8501 53 will attract the effective BCD rate of 10%.

(6) S. Nos. 471 and 472 of notification No. 50/2017- Customs, dated 30th June, 2017 are
being amended. Consequently, all parts for use in the manufacture of LED lights, fixtures
including LED lamps, LED drivers and MCPCB of LED lights, will attract 10% BCD. [S. No.
76 of the notification No. 02/2021-Customs dated 1st February, 2021 refers].

(7) S. No. 491 of notification No. 50/2017-Customs is being amended. Consequently, all
goods falling under heading 8544 (except USB Cable and goods falling under tariff item 8544
30 00 and sub-heading 8544 70) will attract 10% BCD. [S. No. 78 of notification No. 02/2021-
Customs dated 1st February, 2021 refers].

(8) BCD on Ignition wiring sets and other wiring sets of a kind used in vehicles falling
under tariff item 8544 30 00 is being increased from 10% to 15% by increasing the tariff rate

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on all goods falling under this tariff item [Clause 95 (i) of the Finance Bill, 2021 refers. By
virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will
come into force from 02.02.2021. [S. No. 78 of notification No. 2/2021-Customs, dated 1st
February, 2021 also refers].

(9) BCD on inputs, parts, sub-parts and raw materials of following specified parts of
cellular mobile phone, is being increased as detailed below: -

S. No. of notification Description From To Effective

No. 57/2017-Customs date
6A Printed circuit board assembly (PCBA) Nil 2.5% 1.4.2021
6B Camera Module Nil 2.5% 1.4.2021
6C Connectors Nil 2.5% 1.4.2021
7 Items mentioned against the said entry Nil 2.5% 1.4.2021
such as wired headset, USB Cable,
microphone and receiver, etc

[S. Nos. (i), (ii), (iii) and (iv) of the notification No. 03/2021-Customs dated 1st February, 2021
refers].

(10) S. No. 6A of the notification No. 57/2017-Customs is being amended to exclude “Metal
Shield” from the scope of the said entry. Consequently, Metal Shield will now attract BCD as
applicable. [S. No. (i) of the notification No. 03/2021-Customs dated 1st February, 2021
refers].

(11) S. No. 6B of the notification No. 57/2017-Customs is being amended to exclude

“Camera Lens” from the scope of the said entry. Consequently, Camera Lens will now attract
BCD as applicable. [S. No. (ii) of the notification No. 03/2021-Customs dated 1st February,
2021 refers].

(12) S. No. 7 of the notification No. 57/2017-Customs is being amended to exclude

following goods from the scope of the entry, namely: -

“(iv). Battery cover, (v) Front Cover, (vi) Front Cover (with Zinc Casting), (vii). Middle cover,
(ix) Side Key, (xii) Screw, (xiii) Microphone rubber case, (xiv) Sensor rubber case/sealing
gasket including sealing gaskets/cases from rubbers like SBR, EPDM, CR, CS, Silicon and all
other individual rubbers or combination/combination of rubbers, (xv) PU case/ sealing gasket-

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Other articles of polyurethane foam like sealing gaskets/case, (xvi) sealing gaskets/cases from
PE, PP, EPS, PC and all other individual polymers or combination/combinations of polymers,
(xvii) SIM sockets/Other Mechanical items (Metal), (xviii) SIM sockets/Other Mechanical
items (Plastic), (xix) Back Cover, (xx) Conductive cloth, (xxi)Heat Dissipation sticker Battery
cover, (xxii) Sticker battery slot, (xxiii) Protective Film for main lens, (xxv) LCD Conductive
Foam, (xxvii) LCD Foam, (xxviii) BT Foam, (xxx) Key Pad”

Consequently, inputs and raw-materials of above stated items shall attract the applicable BCD
rate. [S.No. (iv) of the notification No. 03/2021-Customs dated 1st February, 2021 refers].

(13) S. No. 7A of notification No. 57/2017-Customs is being omitted. Consequently, inputs

or raw materials [other than PCBA and Moulded Plastics] for use in the manufacture of charger
or adapter of cellular mobile phone will now attract 10% BCD. [S.No. (v) of the notification
No. 03/2021-Customs dated 1st February, 2021 refers].

(14) BCD on PCBA of charger or adapter, is being increased from 10% to 15% by increasing
the tariff rate. [Clause 95 (i) of the Finance Bill, 2021 refers]. By virtue of declaration under
the Provisional Collection of Taxes Act, 1931, this increase will come into force with
immediate effect. All goods other than the PCBA and Moulded Plastic of charger or adapter,
shall continue to attract 10% BCD vide S. No. 13A of the notification No. 57/2017-Customs,
dated 30th June, 2017 as amended vide notification No. 03/2021-Customs, dated 1st February,
2021.

(15) S. No. 7B of notification No. 57/2017-Customs, dated 30th June, 2017, is being omitted.
Consequently, Moulded Plastics of charger or adapter will now attract 15% BCD. [S. No. (v)
of the notification No. 03/2021-Customs dated 1st February, 2021 refers].

(16) S.No. 7C of notification No. 57/2017-Customs is being omitted. Consequently, inputs

or parts of PCBA and Moulded Plastic of charger or adapter of cellular mobile phone will now
attract applicable BCD. [S .No. (v) of the notification No. 03/2021-Customs dated 1st February,
2021 refers].

(17) BCD on inputs or raw materials [other than Lithium-Ion Cell and PCBA] for use in
manufacture of Lithium-ion battery and battery pack, is being increased from Nil to 2.5% with
effect from 1.4.2021. [S. No. 80 of the notification No. 02/2021-Customs dated 1st February,
2021 and S. No. (v) of the notification No. 03/2021-Customs dated 1st February, 2021 refers].

14
(18) BCD on inputs, parts or sub-parts for use in manufacture of PCBA of Lithium-ion
battery and battery pack, is being increased from Nil to 2.5% with effect from 1.4.2021. [S.
No. 81 of the notification No. 02 /2021-Customs dated 1st February, 2021 and S. No. (vi) of
the notification No. 03/2021-Customs dated 1st February, 2021 refers].

(19) BCD rate on Lithium-ion battery and battery pack, Lithium-ion cell, PCBA of Li-ion
battery and parts thereof, is prescribed through various entries of notification No. 57/2017-
Customs and notification No. 50/2017-Customs. All such entries are being consolidated in
notification No. 50/2017-Customs, dated the 30th June, 2017 for ease of reference. [S. Nos. 84
and 85 of the notification No. 02 /2021-Customs dated 1st February, 2021 and S. No. (xi) of
the notification No. 03/2021-Customs dated 1st February, 2021 refers].

(20) S. No. 8 of the notification No. 57/2017-Customs, dated the 30th June, 2017, is being
amended to:-
(i) omit Base stations (8517 61 00), all goods falling under tariff item 8517 62 90 and 8517
69 90 from the entry. Consequently, the inputs or raw materials of said items will attract
BCD as applicable;
(ii) increase BCD from Nil to 2.5% with effect from 1st April, 2021, on the inputs or raw
materials of the goods mentioned against item nos. (i), (ii), (iii) and (iv) in column (3)
of the said entry.
[S. No. (vii) of the notification No. 03/2021-Customs dated 1st February, 2021 refers].

(21) S. No. 20 of notification No. 57/2017-Customs, is being amended to clarify the scope
of the item (h) under the said entry. Consequently, item (h), i.e. “Multiple Input/Multiple
Output (MIMO) and Long Term Evolution (LTE) products” is being separately mentioned in
two different items (h) Multiple Input/Multiple Output (MIMO) products and (i) Long Term
Evolution (LTE) products. These amendments are only clarificatory in nature. These items
continue to attract 20% BCD, as before. Consequential amendments are also being done in S.
No. 22 of the notification No. 57/2017-Customs and S. No. 13S of the notification No. 24/2005-
Customs, dated the 1st March, 2005. [S. Nos. (xii) and (xiii) of the notification No. 03/2021-
Customs dated 1st February, 2021 and notification No. 05/2021-Customs dated 1st February,
2021 refers].

15
(22) S. No. 198 of the Notification No. 25/1999-Customs is being omitted. Consequently,
specified parts like bobbins, wire etc. for manufacture of transformers, will now attract BCD
as applicable. [notification No. 04/2021-Customs dated 1st February, 2021 refers].

Chapter 86: No Change

Chapter 87

(1) BCD on specified auto parts (other than Bicycle parts and components) is being
increased from 10% to 15% by amending S. No. 532 of notification No. 50/2017 – Customs [
S. No. 86 of notification No. 02/2020 – Customs, dated 1st February, 2021]

Chapter 88

(1) BCD on components or parts, including engines, of aircraft of heading 8802 imported
for:
(a) manufacture of such aircrafts;
(b) manufacture of parts of such aircrafts
by Public Sector Units under Ministry of Defence, is being reduced to Nil (subject to specified
conditions). [S. Nos. 88 of notification No. 02/2021-Customs, dated 1st February, 2021 refers].

Chapter 89: No Change

Chapter 90

(1) Notification No. 8/2020-Customs, dated 2nd February, 2020, is being amended to
provide Health Cess exemption on medical devices imported by international/diplomatic
organization. [notification No. 06/2021, dated 1st February, 2021 refers].

(2) Tariff rate on all goods falling under tariff item 9031 80 00 (other measuring or
checking instruments, appliances and machines) is being increased from 10% to 15% [Clause
95 (i) of the Finance Bill, 2021 refers]. By virtue of declaration under the Provisional Collection
of Taxes Act, 1931, this increase will come into force from 02.02.2021. However, the effective
BCD on all goods under tariff item 9031 80 00, is being retained at 7.5% [S. No. 90 of
notification No. 2/2021 –Customs dated 1st February, 2021 refers]. Consequently, goods falling
under tariff item 9031 80 00 will attract the effective BCD rate of 7.5%.

16
Chapter 91

(1) BCD on Instrument panel clocks and clocks of a similar type for vehicles, aircraft,
spacecraft or vessels falling under tariff item 9104 00 00 is being increased from 10% to 15%
by increasing the tariff rate [Clause 95 (i) of the Finance Bill, 2021 refers. By virtue of
declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into
force from 02.02.2021.

Chapter 92-93: No Change

Chapter 94

(1) S. No. 587 of notification No. 50/2017- Customs is being amended. Consequently, solar
lanterns or solar lamps will now attract 15% BCD. [S. No. 91 of the notification No. 02/2021-
Customs dated 1st February, 2021 refers].

Chapter 95
(1) S. Nos. 591 and 592 of notification No. 50/2017- Customs are being amended.
Consequently, parts of electronics toys for manufacture of electronic toys falling under heading
9503 (as per the chapter Note 3 of chapter 95), will now attract 15% BCD subject to the end
use condition. [S. Nos. 92 and 93 of the notification No. 02/2021-Customs dated 1st February,
2021 refers].

Chapter 96-97: No Change

Chapter 98

(1) High Speed Rail Projects are being included in the list of projects eligible for benefit
under Project Imports Scheme [notification No. 09/2021-Customs, dated 1st February, 2021
refers]. National High Speed Rail Corporation Ltd. is being nominated as the ‘Sponsoring
Authority’ for High-Speed Rail Projects, under Project Imports Regulations, 1986 [notification
No. 10/2021-Customs, dated 1st February, 2021 refers]. Consequentially, High Speed Projects
would attract effective BCD of 5%.

17
Miscellaneous

(1) Clause (b), (c) and (e) of first proviso of the notification No. 50/2017-Customs are being
omitted as these clauses are redundant.

(2) List 2 is being omitted [clause ‘V’ of notification No.2/2021-Customs dated 01.02.2021
refers]

(3) Serial number 4 of notification No. 153/94-Customs dated 13th July, 1994 as amended,
extend the said exemption to items ‘costumes and props’ for film making.

(4) S. Nos. 229, 311, 312 and 313 of notification No. 50/2017-Customs are being omitted
with effect from 01.04.2021. Consequently, BCD exemption to items falling under
aforementioned S. Nos. shall be withdrawn with effect from 1st April, 2021 and they would
attract applicable BCD rates. [S. Nos. 22 and 34 of notification No. 02/2021-Customs, dated
1st February, 2021]

(5) S. No. 230 of the notification No. 50/2017-Customs is being omitted. Consequently,
ink cartridges, ribbon assembly, ribbon gear assembly, ribbon gear carriage, for use in printers
for computer, will now attract BCD as applicable. [S. No. 23 of the notification No. 02/2021-
Customs dated 1st February, 2021 refers].

(6) Review of Exemption Notifications: Certain miscellaneous exemption notifications have

been reviewed and these notifications have either been merged with other exemption
notifications or rescinded as these have outlived their utility. The list of notifications that are
being rescinded are as follows:

S. Notification No. Notification Subject

No.
1. 34/2017-Customs Exemption to tags, labels and printed bags imported for
dated 30th June, 2017 fixing on articles for export or for the packaging of such
articles.
2. 75/2017-Customs
Exemption for goods imported for organizing FIFA
dated 13th September,
Under-17 World Cup, 2017.
2017

18
(6) At present, there are certain end-use based exemptions in notification No. 50/2017-
Customs which are presently being administered without the need to follow the procedure set
out under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR
Rules, 2017). To provide uniformity of enforcement of end-use provisions, the condition of
IGCR Rules is being provided for the entries listed below in the manner as specified in the
column (3) of the Table below: -

S.No. S. No. of Description

Notfn
(1) (2) (3)
1. 237 (a) Existing condition 22 for the entry is being amended so as to remove
the requirement of furnishing an undertaking to Deputy
Commissioner/Assistant Commissioner of Customs as per part (b) of
the said condition.
(b) In addition, with the existing condition (as amended), IGCR Rules,
2017 is being prescribed to avail the concession under said entry
2. 254, 255, (a) Existing condition 24 for the entry is being amended so as to remove
380, 406 the requirement of furnishing an undertaking to Deputy
and 497 Commissioner/Assistant Commissioner of Customs as per part (b) of
the said condition.
(b) In addition, with the existing condition (as amended), IGCR Rules,
2017 is being prescribed to avail the concession under said entry.
3. 292 (a) Existing Condition 30 of the entry is being substituted by IGCR
Rules, 2017.
(b) In addition, Deputy Commissioner of Customs or Assistant
Commissioner of Customs having jurisdiction under IGCR Rules,
2017, is also being empowered to issue the end use certificate for the
past period after due verification as per the rules.
4. 333 Existing condition 38 of the entry is being substituted by IGCR Rules,
2017.
5. 408 (a) Existing condition 51 for the entry is being amended so as to remove
the requirement of furnishing an undertaking to Deputy
Commissioner/Assistant Commissioner of Customs as per part (3) of
the said condition.

19
S.No. S. No. of Description
Notfn
(1) (2) (3)
(b) In addition, with the existing condition (as amended), IGCR Rules,
2017 is being prescribed to avail the concession under said entry.

6. 410 IGCR Rules, 2017 is being prescribed in addition with the Condition 52
for the entry.

7. 413 (a) Existing condition 53 for the entry is being amended so as to remove
the requirement of furnishing an undertaking to Deputy
Commissioner/Assistant Commissioner of Customs as per part (iii)
of the said condition.
(b) In addition, with the existing condition (as amended), IGCR Rules,
2017 is being prescribed to avail the concession under said entry.
8. 414 (a) Existing condition 54 for the entry is being amended so as to remove
the requirement of furnishing an undertaking to Deputy
Commissioner/Assistant Commissioner of Customs as per part c.(iii)
of the said condition.
(b) In addition, with the existing condition (as amended), IGCR Rules,
2017 is being prescribed to avail the concession under said entry.
9. 430 (a) Existing condition 60 for the entry is being amended to remove the
requirement of furnishing the end use certificate regarding use of
imported goods to the Deputy Commissioner/Assistant
Commissioner of Customs at the Port of import.
(b) IGCR Rules, 2017 is also being prescribed in addition with the
condition 60 as amended.
(c) In addition, Deputy Commissioner of Customs or Assistant
Commissioner of Customs having jurisdiction under IGCR Rules,
2017, is also being empowered to issue the end use certificate for the
past period after due verification as per the rules.
10. 431 (a) Existing condition 61 for the entry is being amended to remove the
requirement of furnishing the end use certificate regarding use of

20
 S.No. S. No. of Description
Notfn
(1) (2) (3)
imported goods to the Deputy Commissioner/Assistant
Commissioner of Customs at the Port of import.
(b) IGCR Rules, 2017 is also being prescribed in addition with the
condition 61 as amended.
(c) In addition, Deputy Commissioner of Customs or Assistant
Commissioner of Customs having jurisdiction under IGCR Rules,
2017, is also being empowered to issue the end use certificate for the
past period after due verification as per the rules.
11. 534 IGCR Rules, 2017 is being prescribed in addition with the Condition 74
for the entry.
12. 559 The Explanation in the said entry is being amended to replace the
Assistant/Deputy Commissioner of either Central GST or State GST, as
the case may be with Deputy Commissioner of Customs or Assistant
Commissioner of Customs having jurisdiction under IGCR Rules, 2017.
[Notification No. 02/2021-Customs dated 1st February, 2021 refers].

21
 ANNEXURE B
EXCISE

Note:

(a) “Basic Excise Duty” means the excise duty set forth in the Fourth Schedule to the
Central Excise Act, 1944.
(b) “Road and Infrastructure Cess” means the additional duty of excise imposed levied
under section 112 of the Finance Act, 2018.
(c) “Special Additional Excise Duty” means a duty of excise levied under section 147 of
the Finance Act, 2002.
(d) NCCD means “National Calamity Contingent Duty” levied under Finance Act, 2001,
as a duty of Excise on specified goods at rates specified in the seventh schedule to
Finance Act, 2001.
(e) “Agriculture Infrastructure and Development Cess” means the additional duty of
excise, levied vide Clause 116 of the Finance Bill, 2021,

Chapter 24

(1) New tariff items inserted in Chapter 24 in the fourth Schedule of the Central Excise
Act, 1944 in accordance with upcoming Harmonised System 2022 Nomenclature.
(2) The Fourth Schedule to the Central Excise Act, 1944, is being amended with effect
from 01.01.2022 to prescribe the rates following tariff items. [Clause 96 (ii) of the Finance Bill,
2021 refers]:
Tariff Rate of
Description of goods Unit
Item Duty
(1) (2) (3) (4)
2404 11 00 Products intended for inhalation without combustion, Kg. 81%
containing tobacco or reconstituted tobacco
2404 19 00 Products intended for inhalation without combustion, Kg. 81%
Other

(2) The Seventh Schedule of the Finance Act 2001, is being amended with effect from
01.01.2022 to insert the following tariff items.

22
 Tariff Rate of
Description of goods Unit
Item Duty
(1) (2) (3) (4)
2404 11 00 Products intended for inhalation without combustion, Kg. 25%
containing tobacco or reconstituted tobacco
2404 19 00 Products intended for inhalation without combustion, Kg. 25%
Other

Chapter 27

(1) To align the First schedule of the Customs Tariff Act, 1975 to the Fourth Schedule to
the Central Excise Act, 1944 in respect of Crude Petroleum Oil, it is proposed to amend entries
in heading 2709 so as to replace the existing tariff items and entries thereof (2709 10 00, 2709
20 00 in the Fourth schedule of the Central Excise Act, 1944 and 2709 00 00 of the First
schedule of the Customs Tariff Act, 1975) in both the First schedule of the Customs Tariff Act,
1975 and the Fourth schedule of the Central Excise Act, 1944, with the following two new
tariff items (w.e.f 1.4.2021):
2709 00 10 --- petroleum crude
2709 00 20 --- other

(2) Agriculture Infrastructure and Development Cess (AIDC) is being imposed on Petrol
and High-speed diesel falling under CETH 2710 at the rate of Rs. 2.5 per litre and Rs. 4 per
litre respectively. Simultaneously, Basic Excise Duty and Special Additional Excise Duty on
Petrol and High-speed diesel is being calibrated. The details of these changes are given in
Annexure-C. [notification Nos. 01/2021-Central Excise and 02/2021-Central Excise, both
dated 1st Februarys, 2021 refer]
(3) Exemptions from Special Additional Excise Duty (SAED) and Road and Infrastructure
Cess (RIC) is being provided to new category of blended fuels namely, 15% Methanol blended
Petrol (M-15 fuel) and 20% ethanol blended Petrol (E-20 fuel), provided appropriate excise
duty on Petrol and appropriate GST on ethanol/methanol and cosolvents has been paid.
[notification Nos. 04/2021-Central Excise, 05/2021-Central Excise and 06/2021-Central
Excise, all dated 1st February, 2021 refer]

23
(4) Exemption from Agriculture Infrastructure and Development Cess (AIDC) is being
provided to blended fuels namely 5% ethanol blended petrol, 10% ethanol blended petrol, 20%
bio-diesel blended High speed diesel, and new category of blended fuels namely, 15%
Methanol blended Petrol (M-15 fuel) and 20% ethanol blended Petrol (E-20 fuel). [notification
Nos. 03/2021-Central Excise, dated 1st February, 2021 refers]
(5) The Exemptions available to blended fuels, 5% ethanol blended petrol, 10% ethanol
blended petrol, 20% bio-diesel blended High speed diesel from Basic Excise Duty, Special
Additional Excise Duty and Road and Infrastructure Cess is being amended to include the
reference to the AIDC in the definition of appropriate duty of excise on petrol/diesel being
blended. [notification Nos. 02/2021-Central Excise, 05/2021-Central Excise and 07/2021-
Central Excise, all dated 1st February, 2021 refer]
(6) Amendment in Fourth Schedule made by Notification No. 08/2019-CE (T) dated
31.12.2019 shall be made effective w.e.f. 01.01.2020, retrospectively [clause [98] of the
Finance Bill, 2021 refers].

(7) It is proposed to specify correct IS “17076” against the tariff item 27101249 and made
effective from 01.01.2020, retrospectively [clause [97 (i)] of the Finance Bill, 2021 refers]

(8) It is proposed that tariff rate of 14%+ Rs. 15.00 per litre against tariff item 2710 20 10
and 2710 20 20 may be prescribed and made effective from 01.01.2020, retrospectively.
[clauses [97 (ii) and 97 (iii)] of the Finance Bill, 2021 refers]

24
 ANNEXURE C

AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS

These changes would become effective on 02.02.2021, 00:00 hours owing to the
declaration made under Provisional Collection of Taxes Act, 1931.

I. Customs:

(1) An Agriculture Infrastructure and Development Cess (AIDC), as duty of customs has
been proposed [Clause 115 of the Finance Bill, 2021 refers]. Enabling provisions has been
made for levy of this cess on all imported goods at the rate not exceeding the rate specified in
the First Schedule to the Customs Tariff Act, 1975. However, it would be levied only on
specified goods as detailed below. All other items are being exempted from this Cess.

Further, the BCD rates have been simultaneously lowered on items on which cess is being
imposed. The list of items on which cess has been imposed and the applicable duty and AIDC
on them with effect from 02.02.2021, is as follows:

S. Heading, Commodity Basic customs AIDC

No sub-heading duty
tariff item
1. 0808 10 00 Apples 15% / 35%* 35%
2. 1511 10 00 Crude Palm Oil 15% 17.5%
3. 1507 10 00 Crude Soya-bean oil 15% 20%
4. 1512 11 10 Crude Sunflower seed oil 15% 20%
5. 0713 10 Peas (Pisum sativum) 10% 40%
6. 0713 20 10 Kabuli Chana 10% 30%
7. 0713 20 20 Bengal Gram (desichana) 10% 50%
8. 0713 20 90 Chick Peas (garbanzos) 10% 50%
9. 0713 40 00 Lentils (Mosur) 10% / 30%* 20%
10. 2204 All goods (Wine) 50% 100%
11. 2205 Vermouth and other wine of fresh 50% 100%
grapes, flavoured
12. 2206 Other fermented beverages for 50% 100%
example, Cider, Perry, Mead, sake,
mixture of fermented beverages or

25
 fermented beverages and
nonalcoholic beverages
13. 2208 All goods (Brandy, Bourbon 50% 100%
whiskey, Scotch etc.)
14. 2701 Various types of coal 1% 1.5%
15. 2702 Lignite, whether or not agglomerated 1% 1.5%
16. 2703 Peat, whether or not agglomerated 1% 1.5%
17. 3102 10 00 Urea Nil 5%
18. 3102 30 00 Ammonium nitrate 2.5% 5%
19. 31 Muriate of potash, for use as manure Nil 5%
or for the production of complex
fertilisers
20. 3105 30 00 Diammonium phosphate, for use as Nil 5%
manure or for the production of
complex fertilisers
21. 5201 Cotton (not carded or combed) 5% 5%
22. 7106 Silver (including imports by eligible 7.5% 2.5%
passengers)
23. 7106 Silver Dore 6.1% 2.5%
24. 7108 Gold (including imports by eligible 7.5% 2.5%
passengers)
25. 7108 Gold Dore 6.9% 2.5%
* All goods originating in or exported from the United States of America.

(2) For the purpose of calculating the AIDC, the import value of such goods shall be
calculated in the same manner as the value of goods is calculated under the provisions of section
14 of the Customs Act, 1962.

(3) Social Welfare Surcharge (SWS) would be levied on AIDC. However, exemption from
SWS on AIDC has been given to gold and silver.

(4) Further, goods imported under customs duty exemptions available under FTA and EOU
as well as under advance authorization schemes are being exempted from AIDC.

26
II. Excise:
An agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre has been
imposed on petrol and Rs 4 per litre on diesel as an additional duty of excise [Clause 116 of
the Finance Bill, 2021 refers]. Accordingly, Basic Excise Duty and the Special Additional
Excise Duty have been calibrated so that there would be no additional burden on the consumer.
The table below summarizes the change in various duties applicable to Petrol and Diesel:
Commodity Duty rates applicable with effect from 02.02.2021 (Rs. per
litre)
BED SAED RIC AIDC Total

Petrol (unbranded) 1.40 11 18 2.5 32.90

Petrol (branded) 2.60 11 18 2.5 34.10

Diesel (unbranded) 1.80 8 18 4.0 31.80

Diesel (branded) 4.20 8 18 4.0 34.10

BED: Basic Excise Duty; SAED: Special Additional Excise Duty; RIC: Road and
Infrastructure Cess; AIDC: Agriculture Infrastructure and Development Cess.

27
 ANNEXURE D

I. Amendments in Customs Act, 1962:

(a) Section 25 of the Customs Act is being amended to prescribe that all conditional
exemptions, unless otherwise specified or varied or rescinded, given under Customs Act
shall come to an end on 31st March falling immediately two years after the date of such
grant or variation. Further, all existing conditional exemptions in force as on the date on
which the Finance Bill 2021 receives the assent of the President unless having a prescribed
end date, shall come to an end on 31st March, 2023 (if not specifically extended/ rescinded
earlier) on review.
(b) A new section 28BB is being introduced prescribing a two-year time-limit, further
extendable by one year by the Commissioner, for completion of any proceedings under
this act which would culminate in issuance of a notice under section 28 of the Customs
Act, 1962.
(c) Sub section (3) of section 46 is being amended so as to-
i. mandate filing of bill of entry before the end of the day preceding the day (including
holidays) of arrival of goods.
ii. A new proviso is being introduced therein, to enable the Board to notify the time
period for presenting bill of entry in certain cases as it may deem fit.
(d) Section 110 of the Customs Act is being amended so as to revise the procedure for pre-
trial disposal of seized gold, in any form as notified. Commissioner (Appeals) having
jurisdiction, to certify the correctness of inventory of the seized goods and carry out other
procedures as prescribed, before the disposal of the gold in a manner as may be determined
by the Central Government. Other consequential amendments to give effect to this
provision are also being carried out.
(e) Sub-section (ja) is being added to section 113 to provide for the confiscation of any goods
entered for exportation under claim of remission or refund of any duty or tax or levy, so as
to make a wrongful claim in contravention of the provisions of the Customs Act, 1962 or
any other law for the time being in force.
(f) A new section 114AC is being inserted in Customs Act to prescribe penalty in specific
case where any person has obtained any invoice by fraud, collusion, willful misstatement
or suppression of facts to utilize Input Tax Credit on the basis of such invoice for
discharging any duty or tax on goods that are entered for exportation under claim of refund
of any duty or tax.

28
(g) Explanation to section 139 of Customs Act is being amended so as to include inventories,
photographs and lists certified by the Commissioner (Appeals) under the new sub-section
(1D) to the documents within the meaning of that section to give evidentiary value to such
documents.
(h) Section 149 is being amended so as to-

i. introduce a second proviso which would allow amendments to be done through the
customs automated system on the basis of risk evaluation through appropriate
selection criteria.

ii. introduce a third proviso so that certain amendments, as may be specified by the
Board, may be done by the importer or exporter on the common portal.

(i) Section 153 is being amended so as to insert a new clause ‘(ca)’ under sub section (1)
thereof so as to enable service of order, summons, notice, etc. by making it available on
the common portal.
(j) Chapter XVII is being amended so as to insert a new section 154C for notification of a
common portal for facilitating registration, filing of bills of entry, shipping bills, any other
document or form prescribed under this act or under any other law for the time being in
force or the rules and regulations made thereunder, payment of duty and for carrying out
such other functions and for such purposes as may be specified.

II. Amendments in Customs Tariff Act, 1975:

(a) First Schedule to the Customs Tariff Act, 1975 is being amended to create specific tariff
lines for certain items.
(b) Changes to the first schedule to the Customs Tariff Act are being proposed that are to come
into effect from 01.01.2022. This is in accordance with HSN 2022, which proposes 351
amendments to the existing harmonized nomenclature, covering a wide range of goods
moving across borders. The amendments are necessary to adapt to the current trade
through the recognition of new product streams, the changing nature of commodities being
traded, advent of new technologies and addressing the environmental and social issues of
global concern- all with a prime focus on the larger goal of ease of doing business and
trade facilitation.

29
(c) It is being proposed to make the following amendments in the provision relating to ADD,
CVD, Safeguard measures [ sections 8B, 9 and 9A of the Customs Tariff Act and
respective Rules] to provide for:
i. imposition of duty from the date of initiation of anti-circumvention investigation;
ii. anti-absorption provisions to counter situation where, by reduction of export prices
or otherwise, the ADD/CVD levied is sought to be absorbed, diluting the intended
impact of such ADD/CVD.
iii. imposition of these duties on review for period upto 5 years at a time;
iv. uniform provisions for imposition ADD/CVD on account of inputs (attracting ADD
or CVD) used by EoUs and SEZs for manufacture of goods that are cleared to
Domestic Tariff Area;
v. whenever any particular ADD or CVD is temporarily revoked, such temporary
revocation shall not exceed one year at a time;
vi. final findings are to be issued in ADD/CVD, in investigation in review proceedings,
by the designated authority, at least three months prior to expiry of the ADD under
review (with effect from the 1st Jul, 2021);
vii. provisional assessment in anti-circumvention investigation and make some other
technical changes in ADD/CVD Rules;
viii. manner of application of safeguard measure, including tariff-rate quota in the
Safeguard Duty (name changed to Safeguard Measures) Rules.

III. Amendments in Customs Rules

Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 [IGCR Rules] are
being amended to provide the following facilities:
a. to allow job-work of the materials (except gold and jewellery and other precious metals)
imported under concessional rate of duty
b. to allow 100% out-sourcing for manufacture of goods on job-work
c. to allow imported capital goods that have been used for the specified purpose to be
cleared on payment of differential duty, along with interest, on the depreciated value.
The depreciation norms would be the same as applied to EOUs, as per Foreign Trade
Policy.

30
 ANNEXURE E

Amendments in CGST, IGST and UTGST Acts, 2017:

Amendments carried out in the Finance Bill, 2021 will come into effect from the date when the
same will be notified, as far as possible, concurrently with the corresponding amendments to
the similar Acts passed by the States and Union territories with Legislature.

I. AMENDMENTS IN THE CGST ACT, 2017:

a. A new clause (aa) in sub-section (1) of Section 7 of the CGST Act is being inserted,
retrospectively with effect from the 1st July, 2017, so as to ensure levy of tax on
activities or transactions involving supply of goods or services by any person, other
than an individual, to its members or constituents or vice-versa, for cash, deferred
payment or other valuable consideration.
b. A new clause (aa) to sub-section (2) of the section 16 of the CGST Act is being inserted
to provide that input tax credit on invoice or debit note may be availed only when the
details of such invoice or debit note have been furnished by the supplier in the statement
of outward supplies and such details have been communicated to the recipient of such
invoice or debit note.
c. Sub-section (5) of section 35 of the CGST Act is being omitted so as to remove the
mandatory requirement of getting annual accounts audited and reconciliation statement
submitted by specified professional.
d. Section 44 of the CGST Act is being substituted so as to remove the mandatory
requirement of furnishing a reconciliation statement duly audited by specified
professional and to provide for filing of the annual return on self-certification basis. It
further provides for the Commissioner to exempt a class of taxpayers from the
requirement of filing the annual return.
e. Section 50 of the CGST Act is being amended, retrospectively, to substitute the proviso
to sub-section (1) so as to charge interest on net cash liability with effect from the 1st
July, 2017.
f. Section 74 of the CGST Act is being amended so as make seizure and confiscation of
goods and conveyances in transit a separate proceeding from recovery of tax.
g. An explanation to sub-section (12) of section 75 of the CGST Act is being inserted to
clarify that “self-assessed tax” shall include the tax payable in respect of outward

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 supplies, the details of which have been furnished under section 37, but not included in
the return furnished under section 39.
h. Section 83 of the CGST Act is being amended so as to provide that provisional
attachment shall remain valid for the entire period starting from the initiation of any
proceeding under Chapter XII, Chapter XIV or Chapter XV till the expiry of a period
of one year from the date of order made thereunder.
i. Section 129 of the CGST Act is being amended to delink the proceedings under that
section relating to detention, seizure and release of goods and conveyances in transit,
from the proceedings under section 130 relating to confiscation of goods or
conveyances and levy of penalty.
j. Section 130 of the CGST Act is being amended to delink the proceedings under that
section relating to confiscation of goods or conveyances and levy of penalty from the
proceedings under section 129 relating to detention, seizure and release of goods and
conveyances in transit.
k. Section 151 of the CGST Act is being substituted to empower the jurisdictional
commissioner to call for information from any person relating to any matter dealt with
in connection with the Act.
l. Section 152 of the CGST Act is being amended so as to provide that no information
obtained under sections 150 and 151 shall be used for the purposes of any proceedings
under the Act without giving an opportunity of being heard to the person concerned.
m. Section 168 of the CGST Act is being amended to enable the jurisdictional
commissioner to exercise powers under section 151 to call for information.
n. Consequent to the amendment in section 7 of the CGST Act paragraph 7 of Schedule
II to the CGST Act is being omitted retrospectively, with effect from the 1st July, 2017.

II. AMENDMENTS IN THE IGST ACT, 2017:

Section 16 of the IGST Act is being amended so as to:

(i) zero rate the supply of goods or services to a Special Economic Zone
developer or a Special Economic Zone unit only when the said supply is for
authorised operations;
(ii) restrict the zero-rated supply on payment of integrated tax only to a notified
class of taxpayers or notified supplies of goods or services; and
(iii) link the foreign exchange remittance in case of export of goods with refund.

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